Micro-Enterprise Loan Program
The Micro-Enterprise Loan Program was created to help entrepreneurs develop small businesses and self-employment opportunities in the 18 counties of southwest Minnesota. The program provides customized support for entrepreneurs through on-going technical assistance and training as needed for the length of the loan.
Eligible businesses may be start-up or expansion projects and include, but are not limited to: manufacturing, service, retail, and daycare businesses.
- Business loans range from $500 to $35,000.
- Loans may be used for start-up costs, equipment, inventory, furniture and fixtures, or working capital. Funds may not be used for real estate purchases or debt refinancing.
- Interest rate has a base of nine percent and the loan term is six years or less.
- Loans will be collateralized and the borrower should provide equity to the project.
- Loan recipients are responsible for technical fees and filing fees associated with the closing of the loan.
- Business assistance is available in Spanish and Somali.
Applicants are encouraged to call or visit SWIF at an early stage in business development to complete a needs assessment to determine the level of assistance needed, and the feasibility of funding for the project.
SWIF has a partnership with several banks in the region that have committed to informing small business owners and aspiring entrepreneurs about the Micro-Enterprise Loan Program and assisting them with the application process. Customers can apply for these small business loans directly at participating banks and some loan applicants who qualify may be eligible for a lower interest rate by applying through a participating bank. Partnering banks include: Bremer Banks in Willmar, Marshall, and Redwood Falls; Citizen’s Bank & Trust in Hutchinson; First State Bank Southwest in Worthington, Rushmore, Pipestone, Edgerton, and Leota;
Home State Bank in Willmar, Cosmos, Litchfield, or Hutchinson; Klein Banks in Montevideo and Madison; Minnwest Bank in Redwood Falls, Marshall, Danube, Morton, and Belview; and
North American State Bank in Willmar.
The Micro Enterprise Loan Program is administered and partially funded by the Southwest Initiative Foundation (SWIF). Additional funding assistance is provided by the U.S. Small Business Administration (SBA), the U.S. Department of Agriculture (USDA) , and the Otto Bremer Foundation.
| |
Small Business Consultations and Educational Opportunities:
SWIF and the Small Business Development Center (SBDC) are partnering to host free small business consultations at the SWIF office in Hutchinson. Consultations will be offered the first Wednesday of every month from 9 a.m. - 10 a.m. and no appointments are necessary. Appointments can be made for a different day and time by calling the SBDC at (800) 642-0684, ext. 7386.
“Starting a Small Business” pre-venture sessions are held the third Wednesday of each month at SWIF. These three-hour sessions are taught by staff from SWIF, SBDC and Ridgewater College Small Business Management (SBM) program. The class helps entrepreneurs learn how to research and prepare a business plan, and determine whether a business idea is feasible marketable, and profitable. Contact SWIF at (800) 594-9480 or info@swifoundation.org for more information.
“Going into Business Classes” will be offered for tuition credits on a quarterly basis at SWIF through Ridgewater College. Classes will begin in September 2007. Watch our calendar for dates and times. Contact SWIF at (800) 594-9480 or info@swifoundation.org for more information.
For more information about the Southwest Initiative Foundation’s Entrepreneurship Initiative, click here. |
|
 Adobe Acrobat Reader is needed to open pdf documents. If you don't have Adobe Reader you can click here to download Acrobat Reader free.
| For More Information: |
 |
Additional Resources: |
|
|
|
|
|
|
|
